The Integration of Inventory Control in Materials/Logistics Management

Abstract

Inventories provide a rational approach to operations by aiding the smooth flow of materials, the effective utilization of facilities, and efficient materials handling, all to better serve customers.¹ Various operations, both manufacturing and service businesses, involve the inventory process. Inventories allow each unit enough independence to operate efficiently. With adequate inventories, supplies can be ordered and shipped, and operations can be performed without excessive costs for setups and/or ordering. This allows more efficient handling of optimum-quantity lots. Various Japanese techniques of inventory control, such as the Just-In-Time technique, try to achieve these benefits without maintaining large inventories. Unfortunately, inventories allow for poor scheduling, planning, and controls by management.